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Investors who take an interest in Agnico Eagle Mines Limited (NYSE:AEM) should definitely note that the Independent Director, Peter Grosskopf, recently paid US$54.76 per share to buy US$110k worth of the stock. That's a very decent purchase to our minds and it grew their holding by a solid 25%.
See our latest analysis for Agnico Eagle Mines
Agnico Eagle Mines Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Executive Chairman Sean Boyd bought US$1.0m worth of shares at a price of US$52.68 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$50.64). It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
Over the last year, we can see that insiders have bought 25.20k shares worth US$1.3m. But insiders sold 2.79k shares worth US$179k. Overall, Agnico Eagle Mines insiders were net buyers during the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Does Agnico Eagle Mines Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Agnico Eagle Mines insiders own 0.2% of the company, worth about US$38m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About Agnico Eagle Mines Insiders?
It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest Agnico Eagle Mines insiders are well aligned, and that they may think the share price is too low. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For instance, we've identified 5 warning signs for Agnico Eagle Mines (1 is concerning) you should be aware of.